New multi-peril player enters fray

Horsham-based SureSeason Australia is aiming to take on $60 million worth of risk across the country in its first year, with its products being underwritten by global insurance giant Lloyd’s.

SureSeason director Darryl McCrae said he believed the product was unique on the Australian market.

It will provide pay-outs against all perils based on a projected in-season revenue calculated on the farm business five year averages.

In its pay-out methodology, it is similar to other products, but Mr McCrae said a painstaking product planning process in conjunction with the farming sector meant it offered a range of initiatives not currently available on the market.

For example, he said farmers could have flexibility surrounding their level of cover.

“At present, most products offer one level, or at most two, of cover, but within our product, a farmer can nominate the level they like, with the premium adjusted to reflect that.”

Another new offering will be links with agronomy businesses, with Ruralco a referring partner of the SureSeason concept.

“We are keen to target the top echelon of Australian farmers and we think we have a product that will suit,” Mr McCrae said.

He said insurance would be available on all crop commodities, not just cereals and canola as with some other products.

It is also relevant against a range of perils.

“Obviously drought is a big one, but we want to be able to offer protection against all perils not caused by the operator,” Mr McCrae said.

For instance, he said damage from pests and fungal disease would also be insurable.

The Achilles Heel, according to the production sector, for MPCI products in Australia, is generally price.

Mr McCrae said growers could tailor that price according to their individual needs.

“I tell them it will range from the price of a summer spray program to the price of an application of Sakura (a selective herbicide).”

This equates to a range between roughly $12/ha and $35/ha.

Mr McCrae said the company aimed to write policies across the country.

“Geographic spread is important to us.”